Teaching Note: Industrias San Miguel: how to proceed in view of significant, new rules of the game?

This case describes a unique situation that compels the general manager of a company to develop a new strategy. A major probable change in the incentives awarded to the company had been mentioned. It would have been caused by an unexpected modification in the interpretation of the incentive law applied to Industrias San Miguel (ISM). The information about this possibility forced management to elaborate a new strategy for the future of the company. If the changes take place, the new strategy must keep the company financially feasible. The protagonist, Arturo Marroqui, the General Manager, calls for a meeting with his...